Question

what does it mean to say that a data point has a residual of 0?
a. the predicted value for that point is 0.
b. the point lies directly on the regression line.
c. the point lies above the regression line.
d. the point falls at the origin.

Explanation:

The formula for the residual of a data point is \( \text{Residual}=y - \hat{y}\), where \(y\) is the actual value and \(\hat{y}\) is the predicted value. If the residual is \(0\), then \(y=\hat{y}\). This means that the actual value of the data point is equal to the value predicted by the regression line. In other words, the point lies directly on the regression line.

Answer:

B. The point lies directly on the regression line.